Selection Bias – All Capital Is Not Created Equal

Cyprium Capital Markets Perspectives By John Sinnenberg, Chairman, Cyprium Partners My colleagues and I came together seventeen years ago to form the core investment team of Cyprium Investment Partners. Our guiding investment philosophy since our founding has been to make long-term, illiquid, non-controlling investments directly alongside entrepreneurs and families to facilitate the continued growth of…

The Minority Recapitalization: Maximizing shareholder value while retaining economic control

A Minority Recapitalization (Recap) is a viable liquidity alternative for company owners. However, Cyprium has frequently observed that business owners lack the market awareness that would enable them to develop an appreciation for the prospective benefits of a Minority Recap option. Just as important, many issuers are oftentimes unaware of the flexibility that junior capital…

Mezzanine debt takes center stage for small business

By Deborah L. Cohen October 14, 2008 CHICAGO (Reuters) – In the middle of the credit crisis, privately held dairy product maker Kan–Pak needed $15 million in capital, and quickly. Higher energy and commodity prices had prompted its food–service customers, which include Burger King and Chick–fil–A, to demand more of the company’s shelf–stable products. The…

Fundless Sponsors: What They Can Bring to Middle Market Transactions

No Firm Commitment By Phil Curatilo and Beth Laschinger November 19, 2007 A tightening credit market and ever–increasing deal competition is driving private equity firms to secure investment opportunities from alternative sources. In this environment, fundless sponsors have emerged as another option for middle–market, committed capital funds. Fundless sponsors (aka independent sponsors) are groups with…

Self-Control

The Deal September 18, 2006 Tough decisions loom in the distance for entrepreneurs aged 50 and older. As retirement nears, the pressures of maintaining their businesses and planning for their future increase, and questions of “what next?” abound. Characteristic of baby boomers, this generation is hesitant to relinquish control of the companies they’ve spent years…

The China Gambit

CIO Magazine By Stephanie Overby June 16, 2006 Last year, Steve Bandrowczak jumped at the chance to take on a new challenge: the top IT job at PC maker Lenovo Group, a Chinese company. “I’ve rolled out systems in 200-plus countries,” says Bandrowczak, a 25-year IT veteran, describing his experiences as a globe-trotting CIO, including…

Turmoil Points To Mezz Resurgence

Corporate Financing Week By Matt Craft May 26, 2006 The handful of recently launched mezzanine funds will likely benefit from rising rates and inflation fears, according to private equity observers. “The outlook is better than it has been,” said Howard Gellis, senior managing director at The Blackstone Group. Gellis runs Blackstone’s mezzanine group, which closed…

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